Item B: Funding Strategies for Transportation System Operations, Maintenance, and Preservation

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In response to a question from Mr. Bonnett, Mr. Carlson replied that the green line on Exhibit One on page 5 of the Review of Funding Needs for Pavement Preservation assumed that the City would have annual funding of $8.5 million for the preservation program, including the backlog. He explained, however, that it was anticipated there may be operation and maintenance funding shortfalls over the ten-year period which could affect the ability to dedicate the entire $8.5 million to the preservation backlog in years in which operation and maintenance services were not adequately funded. Mr. Bonnett said he was uncomfortable recommending the proposed funding package to the council if, in fact, the projection outlined by the green line could not be achieved. Mr. Carlson responded that the reason it was suggested the annual budget process be utilized with the implementation of such a funding package was because there are many variables in the out years which could affect the actual outcome of the funding recommendation. For example, we do not know what will happen in the future with the Lane County Road Fund, state-shared revenues, or even a proposed reimbursement component to the transportation SDC. He noted that two or three years from now, if revenues are realized as projected in the spreadsheet, Council may make the choice to increase the TUF or other funding mechanism in order to generate sufficient resources to meet both operation and maintenance costs and to maintain the $8.5 million level of annual funding to the preservation backlog. Ms. Mulder stated she had not understood that the TUF could be used for operation and maintenance. She said if there was an excess of revenues that was not needed, the council, through the budget process, could reduce the TUF. Ms. Mulder concluded that she would support the committee’s original suggestion, as long-term estimates were difficult to project. MINUTES- Citizen Subcommittee of the Budget Committee September 19, 2001Page 11